Digital Currency Group, the parent of ailing cryptocurrency company Genesis Global, has said it is pausing quarterly dividends to preserve wealth.
The company’s letter to shareholders said the group is committed to enhancing its balance sheet by reducing operating costs and cash management.
DCG grappling with financial stress
The group reportedly shut down its wealth management business HQ Digital earlier this month, becoming another victim of the FTX explosion. Since the collapse of FTX, the digital currency conglomerate has been employing drastic cost-cutting measures.
The Grayscale parent has reportedly laid off 30% of its staff at crypto lender Origin and closed its headquarters. It owes more than $3 billion to creditors. The DCG subsidiary is reportedly looking to sell assets from its large venture portfolio to raise funds.
BeInCrypto previously reported that Genesis is on the verge of filing for Chapter 11 bankruptcy. In a letter published on January 10, CEO Barry Silbert told shareholders, “Bad actors and repeated shocks have wreaked havoc on our industry, with effects far and wide.”
Gemini Targets Genesis CEO
The letter was in response to Gemini co-founder Cameron Winklevoss, who asked Genesis to resolve Gemini Earn issues. The Winklevoss published a second letter targeting the Genesis CEO.
Winklevoss described the complex interrelationship of transactions between DCG’s genesis and Three Arrows Capital (3AC). He also accused the DCG of accounting fraud and disseminating false information about the financial condition of the firm.
At the same time, Grayscale is required by the US Security and Exchange Commission with respect to its ETF products.[एसईसी]competing with.
The bankrupt exchange recently told creditors that about $415 million was stolen as a result of the cyber attack.
BeInCrypto has reached out to the company or the person involved in the story for an official statement regarding the recent development, but has yet to hear back.